LEEDS CITY REGION Local Enterprise Partnership Construction Labour and Skills Research SHORT REPORT. 1 June 2016

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1 LEEDS CITY REGION Local Enterprise Partnership Construction Labour and Skills Research SHORT REPORT 1 June 2016

2 LEEDS CITY REGION LEP June 2016 Construction Labour Research 2 Contents 1. INTRODUCTION & EXECUTIVE SUMMARY 3 4. DEMAND 5 2. RECOMMENDATIONS 4 5. SUPPLY 8 3. METHODOLOGY & DATA SOURCES 5 6. SKILLS GAPS & PRIORITY OCCUPATIONS 9 Full report The full report into construction and labour demand and supply for the Leeds City Region area is, with appendices, more than 90 pages long. This SHORT REPORT provides a summary of extracts from that report. The full report should be read for a complete picture of the analysis completed, the methodology followed and sources of base data. It provides expanded explanations for each of the sections in this report plus extensive appendices of additional relevant information.

3 Construction Labour Research 3 1. Introduction & executive summary Executive summary The known pipeline demand data indicates a peak of almost 86,000 construction workers 81% of the total 2015 construction workers and an average monthly demand for workers of around 75,200 for However, there will be a requirement for workers for those undefined projects (e.g. sub- 250k and repair and maintenance) that are not included in the Glenigan database. Anticipated labour demand could hit a peak of around 120,000 workers based upon the undefined work referenced in the full report. There are currently around 107,000 people in the local construction workforce. Of these around 36% have 20 years + experience and 27% have 10 to 20 years experience. There are 15 large employers in the region but 92% of construction employment is within micro-businesses (1-9 employees). It is assumed that demand will continue in a construction market that is predicted to experience growth over the next five years. This will be in a large part the result of the anticipated demand for repair and maintenance and the expectation of the continued submission of planning applications. References are made in the full report to major initiatives that will have an impact on the local economy (e.g. High Speed rail and associated infrastructure). However, due to lack of certainty, surrounding these projects, they are not included in the research data but should be considered later as clearer details become available. Establishing a precise numerical assessment of the demand, supply and potential gap for each occupation is disproportionately difficult in relation to the potential value, as pipeline projects change, workers join and leave the pool of employment and move in and out of the Leeds City Region area. Although any potential gap appears unlikely to have a significant impact the potential exists to align better future curriculum planning with industry demand. One mechanism for doing this is to prioritise occupations based on demand and potential gaps. Drivers for construction in Leeds City Region 1. New housing 33.2% 2. Private commercial 24.9% 3. Public non-housing 18.9%. In demand occupations The top three construction occupations by demand for numbers of workers are: Wood trades & interior fit-out Plumbing, heating, ventilation, air conditioning trades Electrical trades and installation. Skills shortages & relative gaps The report indicates that Leeds City Region can expect a small total shortfall in construction skills and specific shortages in a number of construction trades and professions. The construction occupations appearing to have the greatest gap between demand and the available supply locally are in order: 1. Plant operatives 2. Logistics 3. Labourers 4. Specialist building operatives 5. Painters & decorators. There also appears to be relatively high demand and gaps for: Civil engineers and Non-construction occupations. Call to action The call to action is for stakeholders interested in opportunities that enhance the local: economy, population s opportunities and advancement of the Leeds City Region area to engage with one another and the LEP and actively participate in making a contribution to the recommendations in this report and Leeds City Region s skills and development plans.

4 Construction Labour Research 4 CITB Objective CITB s aim is that information provided in the main report will contribute to the Leeds City Region LEP area s evidence base, allowing it to: support local decision making; direct development of the curriculum and education and businessprovider collaboration. 2. Recommendations Leeds City Region s opportunity The Leeds City Region LEP area s opportunities are to: support growing businesses; develop a more appropriately and better skilled and flexible workforce; drive higher level skills, match skills and the local economy, encourage job creation, and support the delivery of infrastructure that will enable further growth and ensure that the Leeds City Region LEP area is prepared to exploit opportunities as they emerge. 1a 1b 1c 1d Develop a dedicated construction plan that addresses, as appropriate, gap between demand and skills provision for critical professions and trades. Developing a more detailed picture of Leeds City Region s pipeline of investments and their implications. Infrastructure investments such as the New Generation Transport system have a potential significant influence. Any construction skills plan should undertake a detailed analysis of the implications for employment and establishing a skills-ready workforce and centres of excellence. Scenario planning for shortage areas would be advisable. Given the lead times for development of skills, a forward look should seek to identify where major initiatives (such as the One North Transport Plan ) will skew demand and create employment and economic opportunities. A holistic skills plan may benefit from identifying cross-sectoral occupational impacts on labour requirements and opportunities. For example, predicted trends for a decline in manufacturing employment may create opportunities for reskilling and upskilling to fill gaps in construction occupations. 2 Identify potential partners within the Leeds City Region; share analysis with them and build collaborative holistic plans. 3 Develop the future curriculum. (Following on from recommendation 2). Through mediated collaboration, it is considered likely that FE colleges could: reduce the provision of under-subscribed courses; increase provision for over-subscribed courses enhance specialist courses to reflect the potential need for new construction skills and balance the provision of training with anticipated demand from the construction contractors locally. That should, where possible, be through apprenticeships (see below). 4 Build a more positive image of construction and enhance careers guidance through schools. Work with construction contractors to help them enhance the image they project. 5 Introduce smart procurement as a lever to enable skills development and image enhancement, whereby public sector tenders contracts set requirements or rewards for value-add initiatives such as: outreach; image development; encouraging participation from minority groups, re-skilling and upskilling. 6 Apprenticeships. Government has set a commitment to create three million apprenticeships by The Leeds City Region area can contribute to this by enabling apprenticeships and the opportunity to incentivise employers and colleges to work together to create a shared apprenticeship scheme.

5 Construction Labour Research 5 3. Methodology & data sources The known pipeline of anticipated construction projects is drawn from a database of submitted planning applications provided by Glenigan. This pipeline lists active planning applications, which we use to show for the period up to Unallocated projects The Glenigan database does not typically include projects valued at less than 250,000 and those not requiring planning consent (including repair and maintenance). For consistency, projects with incomplete data or other anomalies are removed. To address this, Whole Life Consultants with CITB have developed a balancing scenario to estimate undefined work to provide a fuller picture of potential total demand. Labour demand has been calculated from the spend for each project type for the known pipeline over the next five years. Yorkshire & Humber ONS data The picture of supply and gap analysis uses data published by the Construction Skills Network that utilises Office for National Statistics (ONS) data available for the Yorkshire and Humber region. The Leeds City Region area accounts for 58% of construction employment of the Yorkshire and Humber region. So predictions are based on an extrapolation of 58% of that regional data. This report includes figures available for all in employment in the industry (employees AND self-employed). 4. Demand The known pipeline The known pipeline highlights the significance of the largest projects in influencing demand. PIPELINE [ ] Planning applications Total projects Significant projects % Number 1, % Total construction spend 13,335m 11,074m 83% The chart on the right shows: known construction labour demand [in green]. The green line illustrates anticipated mean labour demand from hypothetical iterative data collection. The pale blue area shows estimated total construction labour demand including, repair & maintenance and projects not in Glenigan pipeline data. The period after 2016 represents an artificial drop off that will be filled with new planning applications. As the certainty and completeness of planning application data declines the further forward we look, the most accurate picture of demand is established from data available for 2016 (the peak demand).

6 Construction Labour Research 6 Demand continued Division of construction spend by sector Known construction spend by sector New Housing 3, % Private commercial 2, % Public Non-housing 2, % Infrastructure 1, % Private Industrial % Non-housing - R&M % Housing - R&M % Total 11, % Known labour demand (people) % of total demand New Housing 11,500 38,200 15,850 6,100 2, % Private commercial 10,500 15,300 9,650 11,650 5, % Public Non-housing 6,750 10,950 6,650 7,450 7, % Private Industrial 850 2, % Non-housing - R&M 3,050 2, % Housing - R&M 1,100 1,850 1, % Infrastructure % Transport % Flooding % Energy 750 2,400 4,350 4, % Water % Total 36,150 75,200 38,850 30,450 16, %

7 Construction Labour Research 7 Demand continued Division of construction spend by location Significant projects mapped by location and scale indicate (as would have been expected) a concentration of activity in the centres of population. Construction spend of all Glenigan projects ( m s) Total Total projects Leeds 1,130 1,667 1, , Wakefield , Bradford , York Selby Harrogate Kirklees Barnsley Calderdale Craven Total 2,360 4,215 2,340 1, ,132 1,337

8 Construction Labour Research 8 5. Supply Construction firms & workers The construction workforce for the Yorkshire & Humber Region is estimated to be 196,000. Leeds City Region represents 58% of the Yorkshire & Humber Region s working population so the Leeds City Region construction workforce is assumed to be around 107,000. Around 55% (approx. 11,200) of all construction firms within Yorkshire & the Humber are located in Leeds City Region, as are 15 of the 25 largest employers. Around 92% of construction businesses are micro-sized businesses (0-9 employees). 36% of Yorkshire & Humber construction workers have more than 20 years experience. 63% have10+ years. For Yorkshire & Humber, the average (mean) distance from workers current residence (taking into account temporary residences) to their current site was 19 miles. 55% of all construction workers have only worked on one project type. Learning aims Data from the Skills Funding Agency identified 52 training providers delivering FE Construction and Building Services Engineering learning across the Leeds City Region, with the six main providers being responsible for around 60% of construction training, these are: Leeds College of building (2,430 aims) Calderdale College (1,680) Bradford College (1,150) Barnsley College (899) National Construction College, CITB (740) Wakefield College (700) Six further providers (Craven College, Hull College, JTL, Kirklees College, Leeds City College, York College) deliver training volumes of around aims per year along with a wider number that deliver learning aim volumes of less than 200 aims per year. Although not identified in the figures, there will also be providers delivering training at very low volumes such as less than 10 learning aims per year. There were around 12,400 Construction and Building Services Engineering learning aims delivered in Leeds City Region, accounting for 6.7% of the total number of local learning aims in 2012/13.

9 Construction Labour Research 9 6. Skills gaps & priority occupations Establishing a precise numerical assessment of the demand, supply and potential gap for each occupation is disproportionately difficult in relation to the potential value, as pipeline projects change, workers join and leave the pool of employment and move in and out of the Leeds City Region area. Although any potential gap appears unlikely to have a significant impact the potential exists to align better future curriculum planning with industry demand. One mechanism for doing this is to prioritise occupations based on demand and potential gaps. Where one looks significant and can be influenced this may be worthy of further examination. Where both factors appear significant these occupations are definitely worthy of local discussion and action planning. Labour demand by occupation for known pipeline 2016 Relative gap by occupation average demand for 2016 compared with known 2015 supply 9,400 Non-construction professionals Plant operatives 149% 7,700 Wood trades and interior fit-out Logistics 109% 4,700 Plumbing, heating, ventilation, air conditioning Labourers 97% 4,700 Other construction process managers Non construction operatives 92% 4,700 Other construction professional & technical Civil engineers 91% 4,700 Electrical trades & installation Specialist building operatives (nec*) 90% 4,600 Labourers Painters and decorators 88% 4,400 Senior, executive & business process managers Building envelope specialists 80% 3,250 Building envelope specialists Wood trades and interior fit-out 76% 3,150 Painters and decorators Glaziers 70% 2,100 Bricklayers Plumbing, heating, ventilation, air conditioning 65% 2,150 Non construction operatives Bricklayers 64% 2,100 Civil engineers Non-construction professionals 64% 2,100 Surveyors Surveyors 64% 1,800 Specialist building operatives (nec*) Other construction professional & technical 62% 1,600 Roofers Construction Project Managers 60% 1,750 Plasterers and dry Liners Construction Trades Supervisors 59% 1,350 Construction Trades Supervisors Scaffolders 59% 1,250 Plant operatives Other construction process managers 58% 1,100 Construction Project Managers Senior, executive & business process managers 58% 1,050 Glaziers Electrical trades & installation 53% 800 Steel erectors/structural Floorers 53% 900 Plant mechanics/fitters Plasterers and dry Liners 53% 650 Civil engineering operatives (nec) Roofers 53% 700 Logistics Steel erectors/structural 51% 800 Scaffolders Plant mechanics/fitters 47% 750 Floorers Civil engineering operatives (nec) 29% Occupations to consider developing an enhanced curriculum for may include: Plant operatives Labourers Specialist Building Operatives Painters & decorators For which there appear to be relatively high demand or some demand and are high up the skills gap ranking. There also appears to be high demand and a relative gap for civil engineers and nonconstruction operatives.

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12 Construction Labour Research 12 This report was commissioned by, and prepared for the Leeds City Region LEP by a consortium of CITB and Whole Life Consultants Ltd, ('The Consortium ). The findings and conclusions set forth in this report represent the best professional judgment of the Consortium based on information made available to it at a point in time. The Consortium has relied on, and not independently verified, data provided to it by such sources and secondary sources of information cited in the report. We disclaim any responsibility to the client and others in respect of any matters outside the scope of the above. We accept no responsibility to third parties to whom this report, or any part, thereof is made available. Any such party relies upon the report at their own risk. CITB Bircham Newton Kings Lynn Norfolk PE31 6RH t: +44 (0) CITB is registered in England and Wales Charity No and in Scotland Charity No SC Whole Life Consultants Limited Dundee University Incubator James Lindsay Place Dundee DD1 5JJ t/f: +44 (0) enquiries@wlcuk.com Whole Life Consultants Ltd is registered in Scotland as SC259987, VAT number Registered office c/o 14 City Quay, Dundee DD1 3JA